HOME INFORMATION PACKS

From December 2007 anyone putting a residential property on the market for sale in England and Wales is obliged to supply a Home Information Pack (HIP) for the property. 

The basic premise behind the introduction of the packs is to supply a prospective purchaser with as much information as possible about the property before the formal conveyancing process is embarked upon.  The regulations dictate that certain documents must be provided with others being included at the discretion on the seller.

Although many would argue as to the usefulness of the documents that make up the packs, if you want to market your property at the moment you have little choice but to provide them.  We can prepare the packs on your behalf and supply them to your estate agent.  We also offer, through our pack provider, the option of deferred payment.

Please contact us for more information.

INHERITANCE TAX

In the Chancellor’s pre-budget report in October 2007 some important changes to inheritance tax were announced.

Because of the considerable rise in house values in recent years and the reluctance of the government to increase the threshold for inheritance tax proportionately, increasing numbers of people were finding that their estates were likely to be subject to inheritance tax on their death.  In simple terms, by providing that matrimonial (or civil partnership) assets would benefit from the tax-free allowance of both spouses (or civil partners) in certain circumstances, the new rules have removed the need for many people to incorporate tax planning provisions into their wills.

Not only this, but in some situations, if your will does include tax planning provisions your estate may now be worse off in the long run.

If you would like more information about this or you would like to discuss wills generally please contact us.

LASTING POWERS OF ATTORNEY

Until October 2007, you could draw up an Enduring Power of Attorney (relating to your financial affairs and assets – not your personal welfare) appointing somebody (your “attorney”) to act on your behalf in the event of your losing mental capacity in the future.  It was a four page document containing your and your chosen attorney(s) details and signed by you all which then lay dormant until such time as you may have needed or wanted it to be used.  There was no requirement for the document to be registered at the Public Guardianship Office unless you lost your mental capacity.

If you already have an Enduring Power of Attorney it is still valid and will remain so for the rest of your life but from October 2007 new rules came into effect.

Under the new rules, you can draw up a Lasting Power of Attorney (instead of an Enduring Power of Attorney) relating to either or both your financial affairs and/or your health and welfare.  Each form is twenty five pages long with an additional ten pages of notes.  There is a requirement that your capacity and free will is certified independently at the time that the document is signed and it must be registered with the Office of the Public Guardian (who charge a fee of £150) before it is used.

However, even with the increased paperwork and cost it is still a very good idea to put in place a Lasting Power of Attorney since the procedure that your family will have to go through in the event that you lose your mental capacity in the future and do not have one is even more complicated (and expensive!).

Please contact us for more information.